Restoration Hardware Holdings, Inc common stock (RH) Upgraded to Buy at Zacks Investment Research

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Zacks Investment Research upgraded shares of Restoration Hardware Holdings, Inc common stock (NYSE:RH) from a hold rating to a buy rating in a report published on Friday. Zacks Investment Research currently has $145.00 price objective on the stock.

According to Zacks, “RH posted strong second-quarter fiscal 2018 results, with earnings beating the Zacks Consensus Estimate by 17.8% and also increasing more than three times from the year-ago quarter despite lower-than-expected revenues. RH’s focus on managing the business with a bias for earnings versus revenue growth seems to have paid off. Adjusted gross margins expanded 800 basis points on higher-full-price/lower clearance sales and supply-chain efficiencies. While revenue miss and lower revenue guidance raise concerns, stellar quarterly performance and increased guidance for 2018 operating margin and EPS are encouraging. Meanwhile, shares have outperformed its industry year to date. Estimates for 2018 have also been trending upward. Initiatives like RH Modern, RH Teen, RH Hospitality, the redesign of RH Interiors Source Book and the rollout of Design Ateliers across the company’s retail galleries are expected to drive growth in 2018 and beyond.”

A number of other brokerages have also weighed in on RH. Raymond James lowered shares of Restoration Hardware Holdings, Inc common stock from an outperform rating to a market perform rating in a report on Tuesday, June 12th. They noted that the move was a valuation call. William Blair reissued an outperform rating on shares of Restoration Hardware Holdings, Inc common stock in a report on Tuesday, August 14th. Citigroup raised their price target on shares of Restoration Hardware Holdings, Inc common stock from $140.00 to $170.00 and gave the company a buy rating in a report on Tuesday, June 12th. Loop Capital raised their price target on shares of Restoration Hardware Holdings, Inc common stock to $160.00 and gave the company a buy rating in a report on Tuesday, June 12th. Finally, Gordon Haskett raised shares of Restoration Hardware Holdings, Inc common stock from a hold rating to an accumulate rating and lowered their price target for the company from $135.00 to $58.00 in a report on Tuesday, August 28th. One investment analyst has rated the stock with a sell rating, eleven have given a hold rating and nine have issued a buy rating to the company’s stock. The stock has an average rating of Hold and a consensus price target of $127.50.

Shares of Restoration Hardware Holdings, Inc common stock stock traded down $3.42 during midday trading on Friday, reaching $126.15. The company had a trading volume of 2,388,239 shares, compared to its average volume of 1,274,289. The company has a debt-to-equity ratio of 4.99, a current ratio of 0.83 and a quick ratio of 0.24. The firm has a market cap of $2.80 billion, a P/E ratio of 41.36, a P/E/G ratio of 0.67 and a beta of 2.00. Restoration Hardware Holdings, Inc common stock has a 1-year low of $67.72 and a 1-year high of $164.49.

Restoration Hardware Holdings, Inc common stock (NYSE:RH) last issued its quarterly earnings results on Tuesday, September 4th. The company reported $2.05 earnings per share for the quarter, beating analysts’ consensus estimates of $1.75 by $0.30. The business had revenue of $642.00 million during the quarter, compared to analyst estimates of $660.89 million. Restoration Hardware Holdings, Inc common stock had a net margin of 4.29% and a return on equity of 520.85%. Restoration Hardware Holdings, Inc common stock’s revenue for the quarter was up 3.7% compared to the same quarter last year. During the same quarter last year, the business posted $0.65 earnings per share. sell-side analysts expect that Restoration Hardware Holdings, Inc common stock will post 7.57 EPS for the current year.

In other news, Director Keith Belling sold 4,000 shares of the business’s stock in a transaction on Monday, June 18th. The shares were sold at an average price of $156.41, for a total value of $625,640.00. Following the completion of the transaction, the director now owns 16,586 shares of the company’s stock, valued at approximately $2,594,216.26. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Karen Boone sold 29,876 shares of the business’s stock in a transaction on Tuesday, June 12th. The shares were sold at an average price of $152.19, for a total transaction of $4,546,828.44. Following the completion of the transaction, the insider now directly owns 43,087 shares of the company’s stock, valued at approximately $6,557,410.53. The disclosure for this sale can be found here. Insiders have sold a total of 41,653 shares of company stock valued at $6,354,650 in the last ninety days. Company insiders own 29.70% of the company’s stock.

Several hedge funds have recently made changes to their positions in the company. Municipal Employees Retirement System of Michigan grew its holdings in shares of Restoration Hardware Holdings, Inc common stock by 7.2% in the 1st quarter. Municipal Employees Retirement System of Michigan now owns 7,580 shares of the company’s stock valued at $722,000 after buying an additional 510 shares during the period. Verition Fund Management LLC grew its holdings in shares of Restoration Hardware Holdings, Inc common stock by 16.2% in the 1st quarter. Verition Fund Management LLC now owns 3,926 shares of the company’s stock valued at $374,000 after buying an additional 547 shares during the period. Comerica Bank grew its holdings in shares of Restoration Hardware Holdings, Inc common stock by 3.3% in the 1st quarter. Comerica Bank now owns 19,980 shares of the company’s stock valued at $1,758,000 after buying an additional 631 shares during the period. Rhumbline Advisers grew its holdings in shares of Restoration Hardware Holdings, Inc common stock by 1.5% in the 1st quarter. Rhumbline Advisers now owns 44,624 shares of the company’s stock valued at $4,252,000 after buying an additional 673 shares during the period. Finally, Aperio Group LLC grew its holdings in shares of Restoration Hardware Holdings, Inc common stock by 10.3% in the 1st quarter. Aperio Group LLC now owns 8,532 shares of the company’s stock valued at $813,000 after buying an additional 799 shares during the period.

About Restoration Hardware Holdings, Inc common stock

RH, together with its subsidiaries, operates as a retailer in the home furnishings. It offers products in various categories, including furniture, lighting, textiles, bath ware, décor, outdoor and garden, tableware, and child and teen furnishings. The company provides its products through its retail galleries; and Source Books, a series of catalogs, as well as online through rh.com, restorationhardware.com, rhbabyandchild.com, rhteen.com, and rhmodern.com, as well as waterworks.com.

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